Dialogue with Blockswap co-founder Scott: The driving engine of staked assets, BlockSwap LBP officially launched
BlockSwap LBP officially launched"WanDianLiao" is an AMA live streaming event launched by Blocklike, which regularly invites founders and KOLs related to popular exchanges, promising projects, and hot topics to the live broadcast room. So far, more than 30 heavyweight guests have been invited, including Binance co-founder and CMO He Yi, TRON founder Justin Sun, BitMax co-founder and CEO Cao Jing, and Baoyi Ye Guo Hongcai.
"WanDianLiao" has over 40 blockchain media outlets jointly promoting each live broadcast, with more than 30 communities simultaneously broadcasting, reaching over 100,000 exposures. The highlights of the live broadcast will be compiled into materials and disseminated on Blocklike and 8-10 other media platforms to share the guests' insights.
This AMA is the 40th episode of WanDianLiao, with the theme "The Driving Engine of Staked Assets, BlockSwap LBP Officially Launched." This time, we have invited BlockSwap CEO Matt and COO Scott as our guests.
Here is the summary of this AMA:
Xiao Wan: Can you briefly introduce yourselves, your team members, and BlockSwap?
Scott: I entered the blockchain field in 2014, previously serving as the Global Business Development Director at the Wanchain Foundation, a blockchain protocol focused on cross-chain smart contracts. Before BlockSwap, I created and led WeWork's blockchain-focused incubator. In the growth and operations field, I helped support over 20 startups in London, including (MakerDAO, Celsius, Chainlink), and served as a mentor at (Binance, Pantera, Tezos).
Matt: I am a blockchain architect, specializing in cross-chain technology and PoS architecture. Before BlockSwap, I was responsible for the multi-chain asset tracking network DSCAN and the social currency platform woolah.
BlockSwap is an immutable, decentralized, non-custodial protocol that brings fixed-income products to PoS chains. We use staking and PoS staking as a mechanism to redistribute wealth in a trustless manner.
Xiao Wan: Why did you want to create fixed-income products based on PoS chains, and what are the features of your products?
Matt:
The mission of the Blockswap network is to provide stable returns for everyday users on PoS chains. We focus on mainstream applications of DeFi, connecting it with the external world. Opensaver is our key product to achieve this goal.
BSN is building an immutable protocol to bring fixed-income products to PoS chains, utilizing PoS and staking mechanisms to redistribute wealth.
We at Blockswap believe that mainstream applications of DeFi will best achieve this by addressing the real problems of everyday users, ensuring they have a safer and easier place to store and grow their on-chain wealth. We achieve this in two ways: first, by providing a market-based PoS native yield for non-speculative savings, and second, by offering users a very easy and cost-effective way to do so. The key behind this is OpenSaver— as its name suggests, it is open to everyone. From a 100% permissionless perspective, every savings account is fully collateralized with PoS assets and can be used on-chain. In the current DeFi landscape, there is no uncertainty regarding borrowing demand.
Scott:
When the market crashes, where can you store your cryptocurrency for sustainable savings?
We focus on creating a savings market that brings sustainable returns.
We focus on two types of users:
- Users who want to stake their native tokens to earn higher yield inflation rewards.
- Users who want to earn sustainable APY (annual percentage yield) on savings using fiat without personally engaging with PoS.
Xiao Wan: What is the operating mechanism of the BlockSwap Network, and can you elaborate on the dual-token design?
Matt:
The tokenized PoS assets that come to Open Saver are classified into two categories: liquid staked assets and tradable tranches of yield bonds. This mixture makes Open Saver all-weather by allowing the market to take direct exposure to PoS asset staking yield through simple token purchases, providing the easiest way for capital players to deploy their capital to PoS assets and earn yield directly. It's a groundbreaking capital coordination network at scale.
The dToken/SLOT dual-token system is our trustless tokenization system for PoS equity assets through our automated asset market maker (Stakehouse). This dual-token system is a key component in creating an accessible alternative liquidity layer on DeFi.
Scott:
StakeHouse is an Automated Asset Market Maker (AAM). It is a simple shared registry that allows node operators to register their nodes and associated validators on-chain to enable liquidity abstraction. For staking investors, we simplify the staking process and isolate significantly reduced risks. Our investors can join a specific chain staking node called Stakehouse with 32 ETH. In return, users will receive 24 dETH, a 100% non-reducible 1:1 token (i.e., liquid staked ETH), and 8 SLOT tokens, which represent the perpetual bond tokens of Stakehouse node equity.
Xiao Wan: BlockSwap is based on DeFi protocols, and the integration with traditional finance is also one of the current trends. How do you see the development of the integration between DeFi protocols and traditional finance?
Matt:
The Blockswap network will be a plug-and-play network suitable for all DeFi protocols and fintech applications, allowing access to SaverUSD and the saving market through a simple API call. Our L2 gateway interacts with the system without gas fees and will not be overpriced. From a product perspective, Blockswap is very focused on last-mile delivery and distribution.
This is a transformation of how to effectively deploy funds into the PoS asset class without going through 20 steps and learning to stake. Through Blockswap, retail and institutional investors can access PoS assets like ETH2, ALGO, ADA, and DOT, conduct simple token purchases, and effectively manage their portfolios. This will increase the mass adoption of millions of users on-chain and provide $100 billion in monetary bandwidth to create wealth protection on-chain.
Scott:
PoS and staked assets are synonymous with fixed-income products (such as government bonds). Ethereum or other PoS chains pay stable inflation rewards to staked asset holders.
Users pledge their staked assets as collateral for network securities and receive inflation rewards for the service, with the principal redeemable at any time.
This is similar to government bond debt, where users are paid a coupon rate to lend their money at a fixed yield and have their principal returned at maturity. If you look at the current PoS landscape, you will find that PoS chains are gradually maturing and attracting sustained liquidity.
ETH2 will see over $200 billion in assets transferred to PoS in the next 48 months, with $7.8 billion worth of ETH already deposited in the ETH2 staking contract.
In the past 12 months, DeFi TVL has grown over 60 times (+6000%), and we have seen a large number of different tokens incentivized with short-term super high yields. However, so far, no one has been able to provide long-term, fixed-rate, and sustainable savings products.
Xiao Wan: The Ethereum Berlin hard fork has just been completed, and the development of ETH2.0 is continuously advancing. What impact will this have on the BlockSwap Network?
Matt:
Overall, the Berlin hard fork has increased staking costs, but our system is very streamlined and gas-efficient. For example, in the Stakehouse AAMM (Automated Asset Market Maker), it only costs about $500 to convert a Stakehouse into a staking node, which is an order of magnitude cheaper than any existing system for establishing staking derivatives. Our system focuses on one crucial factor: "how to reduce the coordination costs of financial products to negligible ratios."
Xiao Wan: At this stage, there are more and more cross-chain projects. What kind of cross-chain methods do you think will be more compatible and sustainable in the future?
Matt:
We are a cross-chain project, and BSN has a customized L2 for transaction processing, making it available for fintech applications and other applications to easily access our products. L2 also has a unique structure for achieving cross-chain communication. It is based on Ethereum zk-rollup extensions.
First, OpenSaver will support ETH2 and ALGO as collateral for staked assets. Then, ADA and DOT will be integrated soon. Just these four PoS assets provide us with about $200 billion in bandwidth, thus launching a sustainable savings market. We work closely with chain foundations to make integration smoother and the ecosystem easily accessible.
In the current near-zero interest world, the market opportunity for Open Saver services is almost limitless. BSN Open Saver Vault allows web and mobile applications to create dollar deposit accounts in minutes. With Open Saver, any online startup from DeFi protocols, wallets to flexible fintech/non-crypto applications can seamlessly integrate DeFi-supported yield services into their products immediately.
Scott:
As an L2 intermediary layer, we connect various PoS chains with DeFi, allowing users of existing chains to easily integrate with our solutions from their local wallets and Dapps. At the same time, L2 will provide them with a gas-free endpoint for transaction processing, so from the narrative of cross-chain market gateways, the integration possibilities are significant.
BlockSwap is an L2 with a modular architecture. The BSN protocol is a fully automated immutable smart contract. The system is built on an interdependent dual-token system (dToken/SLOT). BSN has a specific type of on-chain staking node called Stakehouses, which hold SLOT tokens— a perpetual bond token that provides continuous cash flow as node equity incentives for Stakehouses. This ensures that staking operations are handled properly and protects regular stakers from significant reduction risks, as their deposits in dToken will receive 1:1 non-reducible tokens that continuously earn rewards from staking.
Xiao Wan: We know that BlockSwap is conducting LBP activities. Can you explain the characteristics and workflow of LBP on Balancer?
Scott:
LBP allows us to effectively allocate CommunityNet tokens in a cost-saving manner while preventing the impact of frontrunners, price spikes, and any other situations that may occur with other AMMs.
We chose LBP as the fairest way to distribute tokens to the community. We want the tokens to be held by more people, and it is necessary to hold cBSN tokens to participate in the CommunityNet community, engage in StakeHouse games, and start earning interactive rewards.
Reading about the fair distribution mechanism of LBP:
BlockSwap also has an LBP user guide:
++https://blog.blockswap.network/cbsn-balancer-lbp-user-guide-4a67dc5dafe7++
Xiao Wan: The community ecosystem has always been very important for project parties, and a lot of effort is needed to expand the community and increase activity. Would you like to share some advice on community governance?
Scott:
After the LBP ends, we will list on Uniswap. Once the CommunityNet launches, cBSN token holders can vote to support other DEXs. These official pools are all eligible for cBSN incentive rewards.
There are three ways to earn rewards in CommunityNet:
- LP entering DEX
- Participating in StakeHouse coordination games
- Community-building activities through proposals (articles, videos, UX, etc.)
Xiao Wan: What are your visions and plans for the future development of BlockSwap?
Scott:
April - ETH2 + Algorand's CommunityNet activities
April - Balancer LBP + Uniswap launch of CommunityNet tokens
- BlockSwap is a member of the Algorand EU Accelerator ++https://algorand.foundation/news/accelerator-europe++
Launch Open Saver - a universal basic savings account plan for ETH/ALGO next chain (DOT, ADA).
We are launching our ETH2 CommunityNet (CN) through protocol market adaptability, which will go live in April. CN will launch a unique token incentive program to guide our founding community.
Approximately 250 million tokens will be distributed through incentives during the CN phase over 5 months. For complete details on CommunityNet and Tokens, please see
++https://docs.qq.com/doc/DVWd5YmF4QlpvbVVW++
CommunityNet is designed to facilitate better alignment between users and the expected functional utility of our products. We want to enable users to test our products in a secure environment and allow us to improve the user interface. Users can learn how our AMM coordination layer works. We reward user participation with CommunityNet tokens. At the same time, we are building a foundational user base for the mainnet, which will launch in 6 months. CommunityNet tokens can be redeemed for mainnet tokens at a 1:1 ratio.
Xiao Wan: Okay, the first Q&A session has ended. I see that everyone has raised many questions. Next, the assistant will select 5 targeted questions from everyone’s inquiries to translate for the guests, and the guests can choose 2 to answer.
1: How does BlockSwap consider global promotion layout? 2: What is the current market valuation of the project? Do you have any estimates for your future market value? 3: Who are the impressive partners of BlockSwap currently? 4: Where are most of BlockSwap's users located? 5: Which auditing team is responsible for this project?
Matt: We also have an ongoing LBP live broadcast, which is a mechanism for fairly discovering network prices. So you can also participate here.
Has BlockSwap cooperated with other well-known projects?
We work directly with all chain foundations to make our product accessible to their ecosystem. Currently, Blockswap is integrating with ETH2, PolkaDot, Cardano, and Algorand.
Scott:
Who are the impressive partners of BlockSwap currently? Next week, our StakeHouse partners will release some exciting news.
This is a privacy summit.
++https://twitter.com/Blockswap_team++
++/status/1384452920750469124++
Republic is also our advisor, and we have a lot of news about them, as well as news from other partners.
